CXC CSEC Exams Exam guide: Principles of Accounts Organization of the Principles of Accounts (POA) exam: In-school exam

candidates: The general proficiency exam consists of two (2) papers and a (SBA) project. Private exam candidates: The general proficiency exam consists of three (3) exam papers.

Principles of Accounts Exam Guide Section 1: Introduction to Principles of Accounts

SPECIFIC OBJECTIVES The students should be able to: 1. Explain the concept of accounting; 2. State the purpose of accounting; 3. Identify the users of accounting information; 4.

CONTENT

concept of Accounting and Principles of Accounting Accounting as a business practice the purpose of Accounting.

Internal and external users Accounting information and their needs

Outline the Types of business organizations: distinguishing (i) Sole-Traders features of various types (ii) Partnerships of business organizations; (iii) Corporations (Limited Liability companies) (iv) Cooperatives (v) Non-Profit Organizations

5. Identify the Financial Statements main financial statements Income statement, prepared by various Trading and Profit & Loss A/C, business organizations; Income and Expenditure A/C, Balance sheets, Cash Flow Statements. (Teachers are not expected to teach how to prepare the cash flow statements but it should be identified as one of the financial statements which must be prepared by corporations). 6. Describe the accounting cycle; 7. The Accounting cycle with its diagrammatic representation.

Outline the Accounting concepts and conventions principles which guide concepts and the accounting process: conventions

that guide the accrual and matching concept; accounting prudence (conservation) concept; process; consistency concept; separate entity concept. 8. Assess the (a) accounting processes which could be readily preformed by role and the use of the computer, for example: impact of technology on payroll, the accounting stock control, process; debtors and creditors schedules. (b) What are the software currently being used in Accounting e.g. Peachtree, SimplyAccounting (c) Advantages and disadvantages of using the computer in accounting.

CXC CSEC Principles of Accounts Exam Guide Section 2: THE CLASSIFIED BALANCE SHEET

SPECIFIC OBJECTIVES The students should be able to: 1. Explain the concept of a Balance sheet

CONTENT

Definition and purpose of a Balance Sheet

2. Identify the components of Definition and examples of a Balance Sheet; Assets, Liabilities, Capital. 3. Use the Balance Balance Sheet equation A= C+L Sheet/Accounting equation;

4.

Construct a simple Balance Sheet;

Preparation of Balance Sheets.

5. Give examples of different Definition and examples of: types of assets and liabilities; Fixed Assets, Currents Assets, Current Liabilities, Long-term Liabilities. 6. Construct classified Balance Arrangements of Assets and Liabilities order of: Sheets; 1. 2. permanence liquidity

7. Determine which terms in a Effect of transactions on Balance Sheet items increase or Balance Sheet will change decrease in terms while marinating the Balance Sheet as a result of various equation. transactions.